If you want to start a business, you have to continue the process of constituting the business with legal procedures. The process includes several registrations and cross verifications. Registration is very important to start the company. So many options are available to register a company. The registration is categorized according to the need of the businessman.
Why is company registration significant?
Registration is not only for the sake of law. Through registration, people consider the company as a liable firm. One can easily get the help of bank and investors. Above all, it is easy for the company to establish all around the nation.
Types of company registration
Private Limited Company
The personal assets like properties of the shareholder would not be at risk in Private Limited Company. Only the common properties of the company face the risks. So the investors in share market do not claim for their investments to be returned from your pocket. These are the benefits of registering for a private limited company. It can have minimum two members and the maximum limit is 200 members.
Private Limited Company has three types of registration
- Limited by Shares – The company does not distribute their shares to a large number of people.
- Limited by Guarantee – This type may not possess share capital or shareholders. This is most probably opt for nonprofit business.
- Unlimited Company – the Unlimited company is solely liable for the company’s growth and development. The member and shareholder of the company are responsible for the depts of the company.
Partnership
This kind of registration is more or less similar proprietorship. More than one person has the authority of the company. All the details including the responsibilities, shares, and roles of the person would be well defined in the legal agreement. Both profit and loss are under the responsibility of the partners. Both loss and profit should share amongst themselves. In case of loss personal properties of the partners can be at risk.
Limited Liability Partnership
This type of registration distinguishes the personal property and the business property. So the personal assets of the partners are in the safe zone. Due to proper maintenance of financial records, incorporation records and tax records Limited Liability Partnership has good credibility when compared to Partnership and Sole Proprietorship.
Proprietorship
The business will be registered in name of one person.One individual will be the person who is solely responsible. The owner and the business person are the same, they do not differ from each other. All the losses and profits are will reach only the proprietor. In case of any loss, the business owner’s assets will be at risk.
Public Limited Company
By increasing the capital of the company, the company sells the shares to the investors. Minimum seven members are required to construct the public limited company and it has no restrictions for the maximum member of the company. Public Limited Company actually subjected to strict rules and regulations.
One Person company
This is for the people who are capable of maintaining their business all alone. Only one person is allowed to be a member of OPC. One Person Company also provides limited liability protection to the shareholders.
Limited Company
This kind of company can have any number of members. Minimum three members are required as director of the company.
Section 8 Company
Section 8 company fit for the non-profitable firm. This is to elevate art, science, sports, education, research, social welfare, religion, charity, protection of the environment or any such other object. Section 8 and section 25 run for a charitable reason.
Documents needed for the incorporation of the company
Directors of Indian Nationals
PAN Permanent Account Number, it is the identification number provided by the income tax department. For the directors who are about to incorporate a company, PAN card is important for registration.
Address Proof The proposed director is expected to submit his current address and it must have the name of the proprietor. The name in the PAN card and Address proof must match one another.
What are the documents can be accepted as address proof?
- Aadhaar Card
- Driving License
- Electricity Bill
- Telephone Bill
- Passport
- Electricity Bill
- Election Card or Voter Identity Card
- Ration Card
Address proof must have the name of directors as it was registered in PAN card.
Residential Proof
This is the proof of your survival at the place which was given for address proof. The below-listed proofs can be accepted as residential proof documents.
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
Directors Of Foreign National
Passport The passport must be legally attested by the native government of the director. The attestation must be legally authorized. If the passport was printed in the native language of the country it should be translated into English. After the translation once again it should be attested by the authoritative personalities. If the date of birth is missed in the passport the person must attach a document which serves as a proof for the director’s DOB.
Address Proof
The Director’s name must be as it was mentioned in their passport. The address should not be older than a year. The below mentioned are serves as address proof.
- Driving License
- Residence Card
- Bank Statement
- The government-issued form of identification containing the address.
Proof Of The Registered Office
Documents have to be produced as proof for the registered office.
- The registration of the particular place at the registered office in the name of the company.
- The attested rental agreement or the receipt of the rent will serve as proof, and it should not older than one year.
- The No Objection Certificate is required, it is to ensure that the premises are used under the name of the company with the permission of the landowner. The name should be mentioned in any of these Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed.